American Airlines, TWA Benefits Ruling Upheld

Law360, New York (July 11, 2007, 12:00 AM EDT) -- An appeals court on Monday upheld a lower court's ruling that American Airlines Inc. had no obligation to honor travel benefits promised by Trans World Airlines LLC to employees who retired under an “early-out” provision before TWA entered bankruptcy and was acquired by American Airlines.

In May 2006, a lower court judge granted summary judgment to the defendants, stating that the plaintiffs could not prove that a direct contract for free, space-available travel into retirement existed between themselves and American Airlines, or that a contract honoring...
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